REG - Alpha Growth PLC - Appointment as Investment Manager/Insurance Update

Alpha GrowthAnnouncement

28/09/2022 07:00

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RNS Number : 9131A  Alpha Growth PLC  28 September 2022

 

The information communicated within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulation (EU) No.
596/2014 (as in force in the United Kingdom pursuant to the European Union
(Withdrawal) Act 2018). Upon the publication of this announcement, this inside
information is now considered to be in the public domain

THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND IS NOT AN OFFER OF
SECURITIES IN ANY JURISDICTION.

Alpha Growth plc

("Alpha" or the "Company")

Appointment as Investment Manager and Insurance Update

Alpha Growth Plc (LSE: ALGW and OTCQB: ALPGF), a leading financial services
specialist in the growing longevity asset class, is very pleased to announce
that its wholly owned subsidiary, Alpha Growth Management LLC (AGM) has been
named investment manager of the Alpha Alternative Assets Fund (NASDAQ: AAACX).

The Alpha Alternative Assets Fund (the Fund) is an innovative longevity-based
interval fund, aimed at providing main street investor access to an asset
class once only available to institutional or UHNWI investors. Below are some
of the key aspects of this Fund.

·    The minimum investment into the Fund is set at a low level of $2,500,
(1% of the amount required for the BlackOak Alpha Growth Fund) and therefore
significantly increases the total addressable market for the Fund.

·    The Fund expects to distribute a 5% annual dividend to investors,
this means it is suitable for investors who are focussed on both income and
capital appreciation - this again significantly increases the size of the
addressable investment market.

·    Alpha will earn a 1.5% management fee for the AUM that it manages,
this is not split with any 3(rd) party.

·    The net asset value, which is effectively the AUM that Alpha's fee
will be based upon, is currently circa $7.2m - this is expected to
significantly grow over the coming months and years as marketing commences.

·    The Fund will generate a daily share price/net asset value which can
be tracked and monitored by investors, with the NAV calculated based upon the
underlying asset value that the Fund holds.

·    Investors are able to buy into the fund daily and make withdrawals on
a quarterly basis.

·    The Fund is targeted specifically towards US resident investors

 

About the Fund

The Fund is a US focussed, continuously offered, non-diversified, closed-end
management investment company that is operated as an interval fund. The Fund
produces a daily NAV/share price and engages in a continuous offering of
shares of beneficial interest in the Fund. The Fund is registered under the
Investment Company Act of 1940 and the Securities Act of 1933 and is
authorized as a Delaware statutory trust to issue an unlimited number of
shares. Currently, the Fund has a net asset value of approximately $7.2
million. Investors can purchase shares daily and the Fund offers to repurchase
shares to provide investors liquidity on a quarterly basis.

As part of its expansion plans, Alpha was in the process of developing its own
interval fund when the opportunity to step in as investment manager of an
existing fund presented itself, this allowed the Company to expedite the
process, save time and costs, and quicken the route to market. Alpha's team
are now focussed on repurposing the Fund to focus on longevity assets.

What is an Interval Fund?

An interval fund is very different from the Company's BlackOak Alpha Growth
Fund (BOAGF), in several distinctive ways. BOAGF is a private fund with a
minimum investment of $250,000 and is structured to provide tax efficient
holdings of life settlements. AAACX is a registered fund, listed, and is open
to investors who wish to invest small amounts.  BOAGF produces a monthly NAV,
while AAACX produces a daily NAV/share price. BOAGF purchases individual life
settlements, while AAACX will be investing in other funds and securities with
longevity asset exposure.

How will the Fund be managed and marketed?

Both funds are marketed through the registered investment advisor networks.
The Company determined that it could leverage its existing relationships with
Registered Investment Advisers and achieve some efficiencies as it could offer
solutions to a broader investor base.

The activities of both funds will be overseen by Chad Schafer, the recently
appointed Head of Affiliated Funds. The Company does not see BOAGF competing
with AAACX for investors but rather sees AAACX significantly increasing the
number of investors who can invest into its Funds whilst also increasing
awareness of Alpha Growth Plc.

Chad Schafer, Head of Affiliated Funds, commented, "I am incredibly excited to
start my Alpha career with the launch of this innovative new interval Fund,
the potential to significantly and rapidly grow this new Fund was one of my
key motivations for joining Alpha and I strongly believe we can create a Fund
which is truly industry leading."

Chad continues, "Not only is the Fund expected to generate significant revenue
in the long term and profitability for Alpha Growth as it scales but it also
opens up an asset class which was previously only enjoyed by institutions and
UHNWIs to a significantly wider group of investors. I believe the Alpha
Alternative Assets Fund is the first registered fund of its type in the world
and represents a real opportunity for significant, sustainable and profitable
growth for Alpha Growth.  We see this as being complimentary to BOAGF, as
investors get to know longevity assets, they will seek out specific strategies
and that is where we can guide them from one structure to another. The
Registered Investment Adviser now has a solution for both the UHNW client who
has a significant 6 figure sum to invest and who is focused on uncorrelated
growth and tax efficiency, and the client who has a smaller nest egg desiring
both uncorrelated income and growth."

Insurance Company Acquisition

The Directors would like to update the shareholders on the progress of its
insurance company acquisition.

Alpha has successfully concluded all significant steps to complete the
acquisition and now only awaits final sign off from the regulatory authority
for the jurisdiction in which the Guernsey based insurance company's parent
company is headquartered.

This sign-off is expected to be received shortly and, as such, Alpha has
commenced the preliminary transition and take-on process with the seller and
its third-party business service providers, to ensure maximum upside potential
can be achieved within the shortest possible timescale.

Gobind Sahney, Executive Chairman of the Company, commented "As previously
announced, the acquisition of the Guernsey based insurance company provides an
excellent platform to offer extremely tax efficient insurance-based wealth
management products to clients across the UK and Europe, it also provides
Alpha Growth with an excellent vehicle for further value accretive
acquisitions within Europe and the UK."

Gobind continued, "I'm very pleased that we have been able to launch our
interval fund ahead of schedule, both this and the Guernsey acquisition are
important building blocks as we deliver upon our plan to be managing over $2bn
of AUM by 2025. We continue to review opportunities that fit our build and buy
strategy and I look forward to sharing further information regarding this in
due course."

For more information, please visit www.algwplc.com or contact the following:

 

 Alpha Growth Plc                       +44 (0) 20 3959 8600
 Gobind Sahney, Executive Chairman      info@algwplc.com (mailto:info@algwplc.com)

 UK Investor Relations - Mark Treharne  ir@algwplc.com (mailto:ir@algwplc.com)

 

About Alpha Growth plc

Specialist in Longevity Assets

Alpha Growth plc is a financial advisory business providing specialist
consultancy, advisory, and supplementary services to institutional and
qualified investors globally in the multi-billion dollar market of life
insurance linked longevity assets. Building on its well-established network,
the Alpha Growth Group has a unique position in the longevity asset services
and investment business, as a listed entity with global reach. The Group's
strategy is to expand its advisory and business services via acquisitions and
joint ventures in the UK and the US to attain commercial scale and provide
holistic solutions to alternative institutional investors who are in need of
specialised skills and unique access to deploy their financial resource in
longevity assets.

 

Longevity Assets and Non-correlation

As a longevity asset, it is non-correlated to the real estate, equity capital
and commodity markets.  Its value is a function of time because as time
passes the value gets closer to the face value of the policy. Hence creating a
steady increase in the net asset value of the investment. This makes it highly
attractive to investors wishing to counteract volatility within an investment
portfolio and add yield.

 

Note: The Company only advises on and manages Longevity Assets that originate
in the USA where the structured and life settlement market is highly
regulated.

 

Forward Looking Statements Disclaimer

Certain statements, beliefs and opinions in this document are forward-looking,
which reflect the Company's or, as appropriate, the Company's directors'
current expectations and projections about future events. By their nature,
forward-looking statements involve a number of risks, uncertainties and
assumptions that could cause actual results or events to differ materially
from those expressed or implied by the forward-looking statements. These
risks, uncertainties and assumptions could adversely affect the outcome and
financial effects of the plans and events described herein. Forward-looking
statements contained in this document regarding past trends or activities
should not be taken as a representation that such trends or activities will
continue in the future. The Company does not undertake any obligation to
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. You should not place undue reliance
on forward- looking statements, which speak only as of the date of this
document.  Readers should not treat the contents of this document as advice
relating to legal, taxation or investment matters, and are to make their own
assessments concerning these and other consequences, including the merits of
information and the risks.  Readers of this announcement are advised to
conduct their own due diligence and agree to be bound by the limitations of
this disclaimer.

 

Important Notice

The content of this announcement has not been approved by an authorised person
within the meaning of the Financial Services and Markets Act 2000 (FSMA). This
announcement has been issued by and is the sole responsibility of the Company.
The information in this announcement is subject to change.

 

ENDS

 

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